| CIMB | MAYBANK |
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Memtech International 1Q18: unfazed by the seasonal weakness
■ 1Q18 core net profit of US$1.8m (+8% yoy) was within our/consensus expectations. ■ Gross margin decline is temporary; we expect improvement as sales catch up in 2H. ■ Order pipeline intact; hence, no change to our FY18-20F EPS estimates. ■ But we expect spillover from weak sector sentiment; hence, lowering our TP to S$1.47, pegged to 10x FY19F P/E (prev. 12x), in line with industry average. ■ We continue to like the stock for its double-digit earnings growth, 4% dividend yield, balance sheet strength and customer diversification efforts. Maintain Add.
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UOL Group Ltd(UOL SP) Doubling its Pipeline
Maintain BUY; Raising residential exposure A UOL-led consortium emerged as the sole bidder for a city fringe site at a government land tender. The developer has effectively doubled its saleable resource with this deal that could yield 1,125 housing units. The SGD1b price tag translates into a reasonable land rate of SGD1,138 psf ppr. Based on its effective stake of 65% in this project, we estimate a development surplus of 21 cts per share. We keep estimates unchanged for now pending full model update. Maintain BUY and SGD10.40 TP, based on a 10% discount to RNAV of SGD11.55.
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| UOB | RHB |
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REITs − Singapore 4QFY18 Results Of MLT And 2QFY18 Results Of FHT Both In Line
Results of MLT and FHT are in line with expectations. MLT saw organic growth from its existing portfolio, contributions from new acquisitions and redevelopments. MLT also proposed an acquisition of 11 logistics properties in China for Rmb1,021.6m. Maintain HOLD with unchanged target price of S$1.41. FHT’s overall portfolio saw a weaker performance, except for its Japan and Singapore portfolios. The Australia portfolio was lifted by Novotel Melbourne on Collins, but saw weakness in Sydney. Maintain BUY on FHT with unchanged target price of S$0.90. Maintain OVERWEIGHT on the sector.
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MindChamps Preschool Adding Four More Preschools In Sydney
Yesterday, MindChamps announced the acquisition of four preschools in Sydney, Australia, for a total purchase consideration of AUD12.9m. The acquisition would be funded by a combination of loan and equity. Currently the group sits on a cash pile of SGD39.4m. As such, it would still be in a net cash position after the acquisition. We expect the acquisition to be completed in 2H18. With the proposed acquisition, we raised our FY18F-20F earnings by 5-8%. This has in turn raised our TP to SGD1.00 (from SGD0.95, 23% upside). Maintain BUY
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| PHILLIP SECURITIES | |
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Sembcorp Marine Ltd Still Gloomy SINGAPORE | OIL & GAS | 1Q18 RESULTS
1Q17 revenue exceeded our expectation but net profit missed. On Jan-18, SMM adopted Singapore Financial Reporting Standards (International) 15 (SFRS 15). Excluding the effects of SFRS 15, revenue would have only increased by 15% YoY, and a net loss reported. Order flow, profitability and guidance is still weak. We maintain our rating REDUCE with a lower TP of S$1.85, based on FY18e EPS of 3.6 SG cents and a blended 12-month forward PER of 51.4x.
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